Bitcoin’s mid-month price rallies in recent months may have a distinct driver—corporate financial engineering tied to Strategy’s perpetual preferred stock, STRC. A new analysis from K33 Research reveals that the stock’s dividend schedule creates a recurring wave of Bitcoin purchases, offering a transparent link between traditional finance instruments and crypto market liquidity.
The STRC Dividend Cycle Unpacked
Vetle Lunde, head of research at K33, detailed a mechanism where STRC pays dividends on the last day of each month, but ownership is determined by the ex-dividend date on the 15th. To receive the dividend, investors must hold STRC by the 15th, sparking a predictable wave of buying ahead of that deadline. This pushes the stock’s price back toward its $100 par value. Once at par, Strategy activates its at-the-market (ATM) equity program, issuing additional shares and using the proceeds to purchase Bitcoin.
This cycle has become a notable feature of the market calendar. In March and April, the pattern drove substantial BTC accumulation: Strategy bought 22,131 BTC in March and a staggering 46,872 BTC in April through this mechanism. That brought Strategy’s total Bitcoin holdings to 818,869 BTC, worth approximately $65.7 billion. In contrast, STRC-driven purchases had totaled only 4,467 BTC in January, highlighting the mechanism’s rapid growth as a capital-raising channel.
Signs of Weakening Demand in May
Lunde observed that the pattern began to re-emerge on May 11, with STRC recovering to $100 and trading volumes rising to their highest level since April 15. However, the pace of that recovery was slower than in previous months, and the resulting BTC purchase amounted to just 1 BTC. This slowdown suggests that investor appetite for the STRC dividend arbitrage may be nearing a plateau, potentially limiting future bitcoin buying support.
Broader Market Context
Despite the supportive STRC dynamic, the broader derivatives market remains cautious. K33 noted that both 7-day and 30-day average funding rates for Bitcoin perpetual futures are still negative, with the 30-day rate close to a record-long negative streak of 74 consecutive days. Additionally, while Bitcoin’s 30-day correlation to the Nasdaq is near record highs, BTC has slightly lagged the recent equity surge, indicating that it is not merely a high-beta proxy for tech stocks.
Strategy has proposed shifting STRC dividends to twice per month, arguing this could reduce reinvestment lag, improve liquidity, and support price stability—a change that might alter the current rhythm of mid-month bitcoin buying.
For traders and investors, the STRC dividend cycle offers a clear, data-driven explanation for recurring mid-month Bitcoin strength. As Lunde and K33 highlight, the interplay between a preferred stock’s ex-dividend date and a corporate Bitcoin treasury can shape short-term market dynamics, even if the force appears to be diminishing.
